Kaiser Permanente Hawaii said it has already invested $40 million as it prepares to take over three Maui County public hospitals.

July 1 was the target date for Kaiser to assume control of the facilities. But the transition has been delayed as the state struggles to reach a settlement over benefits for unionized workers.

“Kaiser Permanente has made a significant investment of time and resources in the Maui hospitals because we care about the health of the Maui community,” said Laura Lott, spokeswoman for Kaiser, both a health insurer and medical provider. “We are disappointed that it’s taken this long, but we are committed to making this transition happen because it’s the right thing to do for the health of Maui. We are very grateful for the support and patience of the community as we cope with delays. We share your concern and are eagerly awaiting a resolution to this issue so we can move forward and complete the transition process.”

The state and the United Public Workers missed a Friday deadline for reporting progress on resolving disputes over benefits for displaced workers affected by the proposed privatization of Maui Memorial Medical Center, Kula Hospital & Clinic and Lanai Community Hospital. A court had asked Gov. David Ige and the union to report on the negotiations by Friday. Instead the two sides asked the 9th Circuit Court of Appeals for more time and were given until Aug. 18.

Ige and the union, representing a third of the 1,500 workers at the facilities, might reach an agreement within days, said Avery Chumbley, chairman of the Maui region board of public hospital operator Hawaii Health Systems Corp., on Wednesday.

“The governor told me he’s very optimistic they’re going to reach an agreement within the next couple days,” he said. “They had an understanding between themselves and were basically going through the documentation process.”

The HHSC board had an emergency meeting Wednesday to discuss contingency plans, including service cuts, in light of the postponed transition.

“We’re not going to take any action as far as eliminations or service cuts. We’re going to take a few more days and see how this unfolds,” Chumbley said. “We’ll wait and see if the governor in fact reaches an agreement with UPW.”

Lawmakers last year authorized the privatization of the Maui County hospitals. The state selected Kaiser to be the new operator of the struggling facilities, which rely heavily on state subsidies. The hospital deal would be the largest privatization of public facilities in Hawaii history, with the state saving an estimated $260 million in hospital subsidies over the next decade, according to Ige.

“We remain committed to the transition to a new healthcare system for Maui County. As part of the process, we must take care of our employees so they can take care of their patients,” the governor said in a statement Wednesday. “It’s a complicated transaction, and we’re continuing to work through all the issues.”

The UPW, in an attempt to stop the transfer of the hospitals to Kaiser, is suing the state for allegedly violating collective bargaining agreements that extend until June 30, 2017. The 9th Circuit Court of Appeals in May issued an injunction that temporarily stopped privatization efforts.

Lott described the facilities as “vital community resources” that must remain open to everyone, regardless of insurance.

“Our goal is to create a sustainable and financially healthy hospital system for the people of Maui and Lanai and set the Maui hospital system on a path to self-sufficiency,” she said.